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Absorption Costing vs. Variable Costing

Absorption Costing vs. Variable Costing

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Advantages of Variable Costing and the Contribution Approach Consistent with Management finds it f l CVP analysis. Net operating income it more useful. il tis closer to net cash flow. Advantages Consistent with standard costs and flexible budgeting. Easier to estimate profitability Profit is not affected by Impact of fixed costs on profits

  Flows, Variable

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